Sensex soars over 720 points, closes neatly above 18,000 to halt 4-day bear run

Indian stocks: Sensex, Nifty soar to halt 4-day losing streak

India’s benchmark stock index reversed course on Monday, rising sharply in a thin session, snapping a four-day losing streak, even as concerns remained over China’s ability to adapt after abandoning its zero-Covid policy and dampened risk appetite.

The 30-share BSE Sensex rebounded from a four-day losing streak and a weaker start to end up 721.13 points or 1.2 percent at 60,566.42, while the broader NSE Nifty-50 gained 207.80 points or 1.17 percent to close at 18,014.60.

Domestic shares rose despite cautious trading and thinner liquidity despite many markets being closed for a holiday.

“I expect the market to recover sharply because the penalties on Thursday and Friday are unwarranted,” G Chokkalingam, founder and head of research at Equinomics Research and Advisory, told Reuters.

However, Mr Chokkalingam warned that sales were low. “Typically, trading is light at this time of year. Markets are expected to be dull as foreign institutional activity subsides over the holidays.”

this The rupee also rose sharply against the dollar, recouping all of Friday’s losses. There’s some left.

While global equities opened modestly higher, the positive impact of recent U.S. inflation data was partly offset by concerns about China’s ability to adapt after abandoning its zero-Covid policy.

China’s National Health Commission announced it would stop providing daily data on coronavirus cases amid a new wave of infections, making it harder for investors to gauge the virus’ impact on the economy.

“The tone is likely to remain cautious,” said Prashanth Tapse, senior vice president of research at Mehta Equities.

“The barrage of COVID-19 headlines is likely to make any investment decisions in the short term challenging, as markets fear the risk of the spread of the new virus could lead to stricter lockdown measures,” he added.

A gauge of inflation closely monitored by the Federal Reserve fell and consumer spending stagnated, according to data released on Friday. Consumer expectations for inflation in the coming year fell this month to the lowest level since June 2021, according to a University of Michigan survey.

While U.S. stocks closed higher on Friday after the data, the S&P 500 and the tech-heavy Nasdaq 100 posted weekly losses.

“US is enjoying ‘Christmas’ today and UK/Europe is enjoying ‘Boxing Day.’ A record weekly net outflow from passive equities,” said Amit Pabari, managing director at CR Forex Advisors.

The overall performance of global stock markets in 2022 is the worst in more than a decade. Global equities face a major turning point in 2022 after a two-year bull market fueled by Russia’s invasion of Ukraine, the Federal Reserve’s fierce battle with inflation and a catastrophe gripping liquidity in international financial markets.

“The Fed has been telling us they will tighten financial conditions until there is a recession or a ‘crash,'” Stephen Innes, managing partner at SPI Asset Management, wrote in a note, according to Bloomberg.

“It’s not a good place to own speculative assets, especially long-term varieties. Tell me cash itself is the best thing to invest in at times like this.”

Still, the Sensex has outperformed its rivals in a challenging year, with domestic investors backing the benchmark during this year’s crisis.

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